Experts: don't splurge, save your tax refund

Experts: don't splurge, save your tax refund

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OKLAHOMA CITY -

It's the biggest check most Americans see every year---their tax refund.

And while it's tempting to buy that new TV or gaming system, financial experts say there are better things to do with your new cash.

"Resist the urge to splurge," said Tracy Ann Miller, CEO of Portfolio Wealth Advisors in Oklahoma city. She says every year, her advice is to put that money to work for you.

"Everyone wants to take that tax refund and go right out and spend it. If you think in advance and make a plan, then you'll make sure that every dollar that you get has a job," 

Miller's advice when making your plan: remember that the money is yours. You earned it by working, so think about how many hours you worked to earn that cash. Then start with who you owe.

"If you have high interest credit cards, pay them down first," Miller said.

The next best thing: save it. Put it in an emergency fund or a retirement account.

As much as we may want something shiny on the shelf, Miller says those short term purchases do nothing to help you in the long term.

"If you can resist the urge for that short term fulfillment, you'll have a much better long term result, and think in terms of things that gain value through time. Credit card debt detracts from value through time."

Miller also suggests donating to charity or starting a college fund for your kids or grandkids.

 

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